1. Applicability:
a) Paid by Government or Indian Concern.
b) Received by Non-resident (not being Company) or a Foreign Company.
2. Conditions:
a) Agreement entered after 31-3-2003
b) The non-resident carries on business in India through a permanent establishment in India or performs professional services from a fixed place of profession.
c) Maintain books of accounts u/s 44AA and gets his accounts audited and report in the prescribed form.
3. Computation of Income: The income shall be computed under the head Profits or Gains of Business or Profession.
4. Inadmissible expenditure:
a) Expenditure or allowance wholly and exclusively not related to business of such permanent establishment or fixed place of profession in India.
b) The amount paid (other than reimbursement of actual expenses) to its Head Office or Other Offices.
